Tata Motors Shares Plunge Over 9 Per Cent Despite Favourable Q4 Results

The auto firm in its January-March quarterly results of the 2023-24 fiscal year (FY24) revealed that its consolidated net profit climbed over three-fold to touch Rs 17,528.29 crore

Despite the favourable results, the firm emerged as the leading laggard on the BSE Sensex and NSE Nifty50 benchmark indices.

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Tata Motors saw its shares plunge over 9 per cent on Monday following the company’s fourth-quarter results released last week. The auto firm in its January-March quarterly results of the 2023-24 fiscal year (FY24) revealed that its consolidated net profit climbed over three-fold to touch Rs 17,528.29 crore and its revenue from operations increased to Rs 1,19,986.31 crore.

However, the results failed to appease investors as the firm’s shares traded at Rs 948 apiece on the BSE, marking a fall of 9.44 per cent, and Rs 947.20 per share on the NSE, crashing 9.50 per cent. 

As of 12:58 PM on Monday afternoon, the company’s stock stood at Rs 960 on the BSE and Rs 959.90 on the NSE, clocking a decrease of 8.3 per cent.

The firm’s consolidated net profit in the last quarter of the preceding 2022-23 fiscal year (FY23) stood at Rs 5,496.04 crore, while its revenue touched Rs Rs 1,05,932.35 crore in the year-ago period.

Despite the favourable results, the firm emerged as the leading laggard on the BSE Sensex and NSE Nifty50 benchmark indices. The market capitalisation (mcap) of the company eroded by Rs 29,946.88 crore to touch Rs 3,17,998.73 crore.

Notably, in its Q4 results, the firm announced a final dividend of Rs 6 per share, subject to approval by the shareholders. Sharing the outlook for the 2024-25 fiscal year (FY25), the company said, "We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25."

Commenting on the results, P B Balaji, Group CFO, Tata Motors, noted, "It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”